Canada, Israel announce enhancements to trade deal

From left, Ed Fast, Rafael Barak and Joe Oliver PAUL LUNGEN PHOTO

TORONTO — It was billed as an improved and modernized trade pact, but federal ministers introducing the latest version of the Canada-Israel Free Trade Agreement (CIFTA) July 21 were just as likely to stress the friendship and shared values between the two countries as the economic benefits the new deal will bring.

The updated agreement adds seven chapters to the trade deal with Israel and brings four existing chapters into the 21st century, said Finance Minister Joe Oliver.

“The updated agreement cuts Israeli tariffs on a number of Canadian goods, including agricultural, fish and seafood products,” he said.

“Just as importantly,” he continued, “the update FTA will deepen already warm ties between our two great countries. [Prime Minister] Stephen Harper has embraced Israel like no world leader before him. Under his leadership, Canada supports Israel’s right to exist as a Jewish state and its right to defend its people, its territory and its identity – unequivocally.”

Oliver, the MP for the Toronto riding of Eglinton-Lawrence, was joined by International Trade Minister Ed Fast and Israeli Ambassador Rafael Barak at a news conference announcing the trade pact at Ryerson University’s Digital Media Zone. Earlier in the day, Harper and Israeli Prime Minister Benjamin Netanyahu announced the new pact in their respective capitals.

“Israel is a priority market for Canada and holds great potential for Canadian companies in a variety of sectors,” Harper said in announcing the deal. “An expanded and modernized free trade agreement will lead to a strengthened bilateral relationship as well as an increase in jobs and opportunities for Canadians and Israelis alike.”

Not to be undone in citing the close ties between the two countries, Fast referred to the Canada-Israel relationship as one of “best friends” who work together.

Israel is known as start-up nation, he said, referring to the large number of high-tech companies that originate in the Jewish state. Canada, too, has a knowledge-based economy, but it faces face a “commercialization gap” in turning good ideas into viable products, something he suggested could benefit from close ties with Israel.

Other areas addressed in the updated trade deal are promoting e-commerce, eliminating non-tariff barriers and easing regulatory hurdles. The agreement also addresses market access for goods, rules of origin and dispute resolution.

Oliver said the deal is part of a larger free trade agenda, the most ambitious one in Canadian history. Canada is a trading nation, with more than 50 per cent of its GDP reliant on international trade.

“When we took office in 2006, Canada had free trade agreements with only five countries. Today we have agreements with 43 countries, including the world’s two largest markets, the United States and the European Union,” he said.

“One of those agreements is with Israel, and I take great pride in it. After all, Israel is a light to the world, the city upon the hill for the Jewish People. In a too frequently hostile or indifferent world, Israel has no greater friend than Canada.”

Barak called the trade deal a “significant” one. Since it was signed in 1996, two-way trade between the two countries has tripled, to $1.6 billion in 2014, he noted, and Israeli companies have found homes in Canada and are active in real estate development, manufacturing, pharmaceuticals and other sectors.

The economic relationship is one part of the bonds that link the two countries, Barak continued. The relationship, he said, is about “shared values.”

Referring to a visit to Canada earlier this month by former Israeli president Shimon Peres, he said the statesman likes to look to the future.

“We have a new dream, a dream that will bring our two countries closer and closer,” Barak said.